The feds are investigating Herbalife on charges that the nutritional supplement company is allegedly a vast pyramid scheme. The inquiry into the company comes amid accusations and a lobbying effort by billionaire Bill Ackman.
Last December Ackman shorted Herbalife for $1 billion. Herbalife has stated that Akman’s campaign is a “cynical, self-serving attempt to manipulate the market” to cover his $1 billion bet. On their website, Herbalife announced that they are intent to fully comply with the investigation and are confident they operate within the law. The launch of the official investigation has caused a dip in the company’s share price.
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[ Source : TIME ]
